PROFITABLE LOW COST CO-PRODUCER PGMS AND CHROME Analyst Visit - - - PowerPoint PPT Presentation

PROFITABLE LOW COST CO-PRODUCER – PGMS AND CHROME Analyst Visit - September 2016

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DISCLAIMER

This document has been compiled by Tharisa plc (“Tharisa”). While the information contained herein is believed to be accurate, no representation or warranty, express or implied is or will be given by Tharisa or its respective directors, employees or advisors or any

• ther person as to the accuracy, completeness or fairness of this document and, so far as permitted by law and except in the case of

fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements negligent or otherwise relating thereto. This document includes certain statements, estimates, targets, forecasts and projections with respect to Tharisa’s anticipated future

• performance. Such statements, estimates, targets, forecasts and projections reflect significant assumptions and subjective

judgments and analysis by Tharisa’s management concerning anticipated results which may or may not prove to be correct and there can be no assurance that any estimates, targets, forecasts or projections are attainable or will be realised. Nothing contained in this document is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Accordingly, none of Tharisa nor any of its directors, employees or advisors nor any other person, shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this document and any such liability is expressly disclaimed. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any estimates, targets, forecasts or projections contained in this document (or otherwise provided by or on behalf of Tharisa with respect to the subject matter of this document).

Basis of preparation note: where figures are expressed in percent and a change is reflected, the change is expressed in percent basis points.

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AGENDA

① Overview ② Mining ③ Processing ④ Mine to Market ⑤ Financials ⑥ Conclusion

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OVERVIEW

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WHAT YOU WILL HEAR TODAY

T h a r i s a i s … M a t u r i n g

• A mid-tier company mining the world’s single largest chrome resource
• Approaching steady state of 147.4 koz PGMs and 1.3 Mt of chrome concentrates
• Listed on the JSE and LSE

D e l i v e r i n g

• A co-producer of PGMs, metallurgical and specialty grade chrome concentrates
• Among the lowest cost producers of both PGM and chrome concentrates
• Profitable from dual revenue streams from a single cost base

F o r w a r d l o o k i n g

• Organic growth opportunities that will result in improved recoveries and production
• Continually evaluating accretive growth opportunities
• Successful listing on the LSE improves capital flexibility

WHO WE ARE …MEET THE TEAM

Notes: 1. Only major subsidiaries have been included 2. Tharisa Minerals BEE partners are a broad-based Community Trust which holds an unencumbered 6% interest and a women's investment group Thari Resources, which holds a 20% interest

Tharisa plc

Cyprus (JSE:THA) (LSE:THS) Arxo Resources (Cyprus) Arxo Logistics (South Africa) Tharisa Minerals (South Africa) Arxo Metals (South Africa) Black Economic Empowerment (BEE) shareholders (2)

26% 74% 100% 100%

Dinami (Guernsey)

100% 100%

Tharisa Mine

Executive Chairman

Loucas Pouroulis

CEO

Phoevos Pouroulis

CFO

Michael Jones

COO

Michelle Taylor

Managing Director: Arxo Logistics

Elize Groesbeek

Executive: Sales and Marketing

Greg Taurog

Operations Director: Tharisa Minerals

Hans van Wyk

EXECUTIVE MANAGEMENT GROUP MANAGEMENT CORPORATE STRUCTURE (1)

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Mine Manager: Tharisa Minerals

David Malunga

Process Manager: Tharisa Minerals

Alston Smith

OVERVIEW

Direct access to the only JSE & LSE listed PGM and chrome co- producer with an integrated marketing and logistics platform

Large scale (828 Mt resource) mid-tier PGM and chrome co-producer Open pit mine with

20 year LOM and 40 year LOM

underground extension One of the world’s

largest single chrome

resources

Mechanised open pit

mining with a skilled and

stable

labour force Steady state production

• f 147.4 koz PGMs

and 1.3 Mt of chrome In production and

de-risked with major capex programme complete Lowest cost quartile

producer of PGM and chrome In-house, cost effective

mine to market

sales and distribution solution Growth/optimisation

initiatives in place

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OUR VALUE CHAIN

THE FULL VALUE CHAIN IS CAPTURED THROUGH THE CO-EXTRACTION OF PGM AND CHROME AND IN-HOUSE MARKETING, SALES AND LOGISTICS

• 20 year open pit
• 40 year LOM underground extension
• 829 Mt resource
• 87 Mt open pit reserve
• 5.5 km mining strike length
• 5 475 ha mining right area
• 300 ktpm ROM capacity at Voyager

Plant

• 100 ktpm ROM capacity at Genesis

Plant

• Forecast production FY2016:
• 129.6 koz of PGMs
• 1.25 Mt chrome concentrates
• Production of higher value foundry

and chemical grade chrome concentrates

• Committed to research and

development

• Forecast specialty grade production

FY2016: 250 kt

• 10.1% of China’s chrome
• re/concentrate imports and

14.2% of South Africa’s chrome

• re/concentrate exports for FY2015
• Road and rail transport capacity,

warehousing facilities and port facilities

• Transport of PGMs to Impala

Refinery Services by road

• Shipment of chrome concentrate in

bulk from Richards Bay Dry Bulk Terminal and containers from the Durban port

• Forecast shipments for FY2016:
• 1 Mt of chrome concentrates,

mainly to China

• PGM off-take agreement with

Impala Refinery Services

• Off-take agreement with Rand York

for foundry and chemical grade chrome concentrates

• 50 ktpm chrome concentrate

agency agreement with the Noble Group

• Relationships with a broad range of

stainless steel producers, ferrochrome producers, foundries, chemical factories and global commodity traders

Mining and processing (Tharisa Minerals) Beneficiation (Arxo Metals) Marketing and sales (Arxo Resources) Logistics (Arxo Logistics) Our customers and agreements

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74% 100% 100% 100%

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MINING

SAFETY

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0.00 5.00 10.00 15.00 20.00 25.00 30.00

Comparative Rate Per Million Hour worked June 2016

• Safety remains the number one priority of management and all

employees – we strive for zero harm

• Tharisa’s TIFR remains among the lowest in the South African

PGM and chrome mining industries

• Renewed commitment to safety engagement with new safety

imperatives and programs being launched

• Achieved the MHSC milestone of 1000 Fatality Free Production

Shifts – 26 August 2016

• Awarded the Best Safety Performance: Opencast Operations

INDUSTRY TIFR FOCUS ON SAFETY

Tharisa

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MINE LOCATION

LOCATED IN THE MAIN PGM AND CHROME PRODUCING AREA IN SOUTH AFRICA

• Mining rights over 5 475 ha
• Adjacent to Anglo Platinum, Aquarius, Impala Platinum, Lonmin

and Samancor

• Well serviced by road, rail, power and other services
• Neighbouring towns are Brits (45 km), Rustenburg (30 km),

Mooinooi (10 km) and Marikana (5 km)

Aquarius

West Pit East Pit Central East Pit Far East Pit

Reef dip east: 9-12° Reef dip west: 14-18° Strike length: 5.5 km

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MINING MG CHROMITITE LAYERS

GENERALISED CROSS SECTION SHOWING THE MG CHROMITITE LAYERS AND PLANNED PIT DEPTH

MG4A MG4 MG4(0) MG3 MG2C MG2B MG2A MG1 MG0

Resource and reserves as at 30 September 2015

Steady state production of 4.8 Mtpa ROM average stripping ration of 8.5 (bcm:bcm) over LOM MINERAL RESOURCE 829.0 Mt at 1.56 g/t (6PGE Au) and 20.4% Cr₂O₃ OPEN PIT MINERAL RESERVE 87.8 Mt at 1.44 g/t (5PGE + Au) and 18.5% Cr₂O₃ Steady state production of 4.8Mtpa ROM Average stripping ratio of 8.9 (bcm:bcm) over LOM

Far West Pit

GEOLOGY

Waste Disseminated mineralisation MG chromitite layers

MG REEF STRATIGRAPHY GEOLOGY

• The MG reef package is classified into six chromitite layers

– MG0, MG1, MG2, MG3, MG4, MG4A

• Partings are generally anorthosite, pyroxenite or norite
• Reef package varies from 50 m in the west to 74 m in the east

(incl. partings)

• PGMs are concentrated in the MG2, MG3 and MG4 reefs

UNIT PROCESS MG4A chromitite layer Sent to Genesis Plant Parting Discarded MG4 package Sent to Voyager Plant Norite or anorthosite Selectively mined and discarded MG3 package Sent to Voyager Plant Norite or anorthosite Selectively mined and discarded MG2 package Sent to Voyager Plant Pyroxenite with disseminated mineralisation Selectively mined and discarded MG1 and MG0 package Sent to Genesis Plant

MINING SEQUENCE AND PROCESS ROUTE

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EAST PIT MINING

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WEST PIT MINING

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PROCESSING

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PROCESSING OVERVIEW

DETAILED PROCESS FLOW DIAGRAM

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PROCESSING

INDEPENDENT PROCESSING PLANTS KEY FACTS

VOYAGER PLANT

• Capacity: 300 ktpm ROM
• Processes reefs with higher

PGM and lower chromite grades

• Produces both metallurgical and

chemical grade products GENESIS PLANT

• Capacity: 100 ktpm ROM
• Processes reef layers with lower

PGM and higher chromite grades

• Challenger Plant recovers high

value foundry and chemical grade chrome concentrates

• Process plants are owned and operated by Tharisa
• Each plant operates independently, providing flexibility

and limiting potential process disruptions

• Basic process:
• ROM is crushed and screened
• Selected reef ROM sent to Challenger Plant to

recover foundry and chemical grade

• Primary milling to liberate chromite crystals
• Primary spirals to recover chromite
• Secondary milling to liberate PGM particles
• Flotation circuit to recover PGM particles
• Secondary spirals to recover additional chromite

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THARISA’S CONCENTRATE

Pt 56.1% Pd 15.7% Rh 9.5% Au 0.2% Ru 13.9% Ir 4.6% Metallurgical grade 1Mt Specialty grade 250 kt

FY2016 forecast Chrome production = 1.25 Mt

CHROME GRADES PRILL SPLIT

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KEY OPERATIONAL METRICS

PGM RECOVERY Target – 70% CHROME RECOVERY Target – 65%

Recoveries

45 50 55 60 65 70 75 FY2014 FY2015 H1FY2016 Target

PGM recovery Chrome recovery 9 months to end 30 June 2016 H1 FY2016 H1 FY2015 FY2015 ROM mined Mt 3.6 2.4 1.9 4.8 PGM rougher feed grade g/t 1.67 1.68 1.65 1.62 Chrome grade % 18.1 18.4 18.7 18.3 ROM processed Mt 3.4 2.2 2.2 4.4 PGM recovery % 66.2 65.0 63.1 65.8 PGM in concentrate koz 93.5 60.0 57.4 118.0 Chrome recovery % 62.4 62.8 56.7 58.0 Chrome concentrate Mt 0.9 0.6 0.6 1.1 Specialty chrome kt 187.3 105.8 47.4 112.8 PGM basket price US$/oz 708 686 945 885 Chrome concentrate price

(42% CIF China)

US$/t 105 106 156 158 Average exchange rate ZAR:US$ 15.0 15.0 11.5 12.0

OUR PRODUCTION

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PGM Production (koz) Total Chrome Production (kt) Specialty Grade Production (kt)

200 400 600 800 1000 1200 1400 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2014 FY2017 50 100 150 200 250 300 350 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2015 FY2017 20 40 60 80 100 120 140 160 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY Forecast

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MINE TO MARKET

MINE TO MARKET

PGM off-take agreement with Impala Refinery Services Specialty Customers include: Stainless steel producers Ferrochrome producers Global commodity traders

PGM CONCENTRATE CHROME CONCENTRATES

ARXO LOGISTICS ARXO RESOURCES THARISA MINE

Metallurgical grade IRS supplies PGMs to: Automotive sector Industrial sector Jewellery sector Investment sector Foundries Chemical producers Refractories 24

GLOBAL DISTRIBUTION

Metallurgical grade chrome concentrate Specialty chrome concentrate Specialty chrome concentrate PGM concentrate Specialty chrome concentrate Specialty chrome concentrate Specialty chrome concentrate

LSE: THS

HQ

JSE: THA

RBDBT Tharisa Minerals

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FINANCIALS

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MARKET CONTEXT – 12 MONTHS

PLATINUM CHROME

CURRENT 42% CHROME CONCENTRATE PRICE

Source: Johnson Matthey Source: FerroAlloyNet

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FINANCIAL CONTEXT

( 33.6) ( 28.3) 13.9 16.5 29.0 ( 40.0) ( 30.0) ( 20.0) ( 10.0)

• 10.0

20.0 30.0 40.0 FY2011 FY2012 FY2013 FY2014 FY2015 ( 49.3) ( 9.2) ( 3.0) 22.4 41.4 ( 60.0) ( 50.0) ( 40.0) ( 30.0) ( 20.0) ( 10.0)

• 10.0

20.0 30.0 40.0 50.0 FY2011 FY2012 FY2013 FY2014 FY2015 28.1 53.9 215.5 240.7 246.8

• 4.4%
• 15.3%

12.0% 13.5% 17.5%

• 25.0%
• 15.0%
• 5.0%

5.0% 15.0% 25.0% 35.0% 45.0%

• 50.0

100.0 150.0 200.0 250.0 300.0 FY2011 FY2012 FY2013 FY2014 FY2015

GROUP REVENUE AND GROSS PROFIT MARGIN

US$ millions

NET CASH FLOWS FROM OPERATIONS

US$ millions

EBITDA

US$ millions

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FINANCIAL CONTEXT

FUNDING

US$ millions

65.0 245.0 123.0 47.9 480.9 FY2009 FY2011 FY2012 FY2014 Total Seed capital Pre listing capital Project finance JSE listing

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SEGMENTAL ANALYSIS (H1 2016)

US$m % change H1 FY2016 H1 FY2015 Gross profit (7.5%) 21.1 22.8 Gross profit margin 6.2% 24.6% 18.4% Results from operating activities (12.4%) 10.6 12.1 EBITDA (17.9%) 14.7 17.9 EBITDA margin 2.6% 17.1% 14.5% Net finance costs 22.0% 6.1 5.0 Profit before tax (36.6%) 4.5 7.1 Tax (36.4%) 1.4 2.2 Profit for the period (36.7%) 3.1 4.9 Headline earnings per share (US$ cent)

• 1

1 Free cash flow per share (US$ cent) 4.6 2.5

H1 FY2016 H1 FY2015

US$m PGMs Chrome PGMs Chrome Gross profit 12.1 9.0 17.2 5.6 Gross profit percentage 33.8% 17.9% 39.1% 7.0% Sales volume 59.1 koz 481.7 kt 58.4 koz 520.5 kt Average transport costs per tonne of chrome concentrate (CIF main ports China) a decrease of 32.2% US$40/t US$59/t

REVENUE

US$86.0m

(2015: US$123.7m)

↓30.5%

OPERATING PROFIT

US$10.6m

(2015: US$12.1m)

↓ 12.4%

NET PROFIT AFTER TAX

US$3.1m

(2015: US$4.9m)

↓ 36.7% PGM revenue US$35.8m PGM selling expenses US$0.1m Chrome revenue US$33.7m Chrome selling expenses US$16.4m

H1 FY2016 Revenue US$86.0m

PGM revenue US$44.0m PGM selling expenses US$0.1m Chrome revenue US$50.3m Chrome selling expenses US$29.3m H1 FY2015 Revenue US$123.7m

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COST ANALYSIS

UNIT COSTS*

change H1 FY2016 FY2015

All in cost per Pt ounce (26.8%) US$450 US$615 All in cost per 42% chrome tonne (40.4%) US$81 US$136

* Including contractor mining labour of 884 people

Mining * 53.3% Utilities 6.5% Reagents 2.9% Steelballs 4.3% Labour 9.3% Diesel 14.5% Overheads 9.2%

OPERATING COST ANALYSIS – EX-WORKS

* By product basis

CONSOLIDATED CASH COST PER TONNE MILLED ↓16.3%

US$28.7/t

(2015: US$34.3/t)

CONSOLIDATED CASH COST PER TONNE MILLED

US$/tonne milled

38.2 37.7 28.7 16.4 12.7 7.2 10 20 30 40 50 60 FY2014 FY2015 H1 FY2016 Cash cost excluding logistics Logistics

US$m H1 FY2016 FY2015 Total interest bearing debt 51.8 75.6 Long term 27.8 36.3 Short term* 24.0 39.3 Debt service reserve account 9.8 10.6 Pro forma interest bearing debt 42.0 65.0 Pro forma debt to total equity ratio 24.2% 36.3% Cash and cash equivalents 11.1 24.3 Net debt 30.9 40.7 Net debt to total equity ratio 17.8% 22.7% Net current liabilities 11.4 10.3 Return on equity 2.7% 2.0%

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BALANCE SHEET

FUNDING CAPITAL

US$m H1 FY2016 FY2015 Capital expenditure 6.4 24.6 Deferred stripping 3.1 15.2 3.3 9.4 Depreciation charge 4.6 10.3

DEBT TO EBITDA MULTIPLE

1.8 x

(FY2015: 2.6 x )

* Included certain amounts in accounts payable relating mainly to accrued dividends payable by a subsidiary

6.1 10.9 8.4 10.6 10.7 6.8 8.9 FY2011 FY2012 FY2013 FY2014 FY2015 H1 FY2016 Open pit LOM

STRIPPING RATIO

m3 to m3 basis

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OUR VALUE PROPOSITION

*Source: BMO Capital / Factset

EV/EBITDA COMPARISON*

THARISA* PEER AVERAGE** EV/EBITDA 5.5 x 12.3 x Debt/EBITDA 1.8 x 1.9 x Net debt/EBITDA 1.0 x 1.0 x Net debt/Equity 0.2 x 0.2 x EBITDA margin 17.1% 13.7% Operating margin 21.2% 12.6% Price/free cash flow per share* 7.8 x 12.1 x

*Annualised EBITDA **Source: BMO Capital / Factset As at 24 June 2016 5.5x 17.3x 16.1x 13.5x 11.4x 8.7x 7.5x Stillwater Northam Royal Bafokeng Amplats Impala Lonmin Tharisa

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CONCLUSION

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SHAREHOLDER ANALYSIS

MARKET STATISTICS SHARE PERFORMANCE

Source: Bloomberg

Listings JSE code: THA LSE code: THS Listing date 10 April 2014 8 June 2016 Market cap R3.4 billion GBP188.9 million Ranges R4 – R16 (1Y) 35.00p – 93.00p (since listing) YTD return 168% 110% (since listing) Current P/E Ratio 47.5

• Shares in issue

256.982 (m)

JSE (YTD) LSE (since listing)

As at 5 September 2016

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OUTLOOK

• Q3 production of 33.5 koz of PGMs and 307.1 kt of chrome concentrates
• PGM full year 2016 forecast of 129.6 koz

– Steady state production of 147.4 kozpa

• Chrome concentrate full year 2016 forecast of 1.25 Mt

– Steady state production of 1.3 Mtpa including 300 kt of specialty chrome concentrates

• Looking ahead

₋ Improving ROM feed grades ₋ Targeted improvement in PGM and chrome recoveries ₋ Optimisation initiatives being implemented through innovative technology ₋ Annual dividend policy of 10% NPAT

Tharisa will continue to implement its strategy to become a leading natural resources company focused on originating, developing and operating mines in the PGM, chrome and automotive raw materials sectors

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WHAT MAKES US DIFFERENT?

I n n o v a t i v e …

• We don’t only produce platinum … we are a co-producer of PGM and chrome concentrates
• We don’t mine just one mineral reef … we mine 5 MG chromitite reef layers
• We don’t have underground mines … we run a large scale open pit operation
• We don’t only mine … we enjoy the benefits of controlling an integrated mine-to-market value chain

E s t ab l i s h e d …

• We are not new … we are 10 years old
• We are not a start up … we plan to reach steady state production of 147.4 koz PGMs and 1.3 Mt chrome concentrates within the next year
• We are not still spending … all major capital investment already complete
• We are not entering wage talks … we have stable labour relations with a three year wage agreement with NUM
• We are not burning cash … we are generating cash as a low cost producer

F o c u s e d …

• We have a solid platform underpinned by an optimised operating model
• We are profitable in spite of a weak commodity environment
• We intend to maintain momentum through challenging times

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WHY WE STAND OUT FROM OTHER INVESTMENTS

UNIQUE MINING APPROACH

Mining 5 MG chromitite layers – access to both PGMs and chrome resources

LOWEST QUARTILE COST CURVE

One of the PGM and chrome industry’s lowest cost producers – with more room to cut costs

INNOVATIVE PROCESSING

Allows us to process both PGMs and chrome – with expansion opportunities

SECURE VALUE INVESTMENT

Direct access to JSE and LSE listed PGM and chrome co-producer

GROWTH OPPORTUNITIES

Organic growth opportunities through pit extension and future underground mining – with potential acquisitive growth when the market allows

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STRATEGY

LEADING NATURAL RESOURCES COMPANY

• PGM, chrome and automotive

raw materials

• Large scale, low cost projects

that are in or close to production

INNOVATION

• Growth through innovative

research and development projects OPTIMISATION INITIATIVES

• Maximise value extraction

LEVERAGING MARKETING, SALES AND LOGISTICS PLATFORM

• Expansion into multi-

commodities

• Geographic diversity

CAPITAL DISCIPLINE

• Dividend policy of 10% of NPAT
• Capital allocation to low risk

projects

LEADING NATURAL RESOURCES COMPANY PGM, CHROME AND AUTOMOTIVE RAW MATERIALS LARGE SCALE, LOW COST PROJECTS THAT ARE IN OR CLOSE TO PRODUCTION

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STRATEGY - GROWTH

OPTIMISATION ACCRETIVE

• From SIB

– Spiral replacement programme complete by end FY2016 – High energy flotation at Genesis Plant complete by end FY2017

• Ring fenced capital

– Public private partnership with Transnet for on mine rail siding (estimated capital of R180 million) – Ultra fine grind feasibility study to improve PGM recoveries by 10% (estimated capital of R250 million) – Assessment of various chrome technologies to improve recoveries

• Parameters

– Open pit, large scale – Quick to market approach – ROI of 25% – Location/geographic diversification

• Commodities

– PGMs – Chrome – Stainless steel raw materials – Automotive raw material supply

THANK YOU

www.tharisa.com

ANNEXURES

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HISTORY AND MILESTONES

THARISA PLC

PRIOR TO ACQUISITION OF THARISA MINERALS

THARISA MINERALS

PRIOR TO ACQUISITION BY THARISA PLC

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MAR 2006 Tharisa Minerals incorporated FEB 2006 AND MAR 2007 First prospecting rights secured NOV 2007 Granted mining rights MAR 2008 Purchased additional mining rights FEB 2008 Tharisa Limited was incorporated APR 2008 Consent received to acquire a 74% shareholding in Tharisa Minerals DEC2008 US$65 million seed capital raising OCT 2008 Commenced trial mining JUN 2016 Listed on the LSE MAR 2016 Annualised steady state MAR 2015 Record production

• f PGMs

APR 2014 Listed on the JSE JUL 2013 Challenger plant Is commissioned DEC 2012 Voyager plant is commissioned SEP 2014 Commissioning of high energy PGM flotation circuit FEB 2012 Secured project finance facility of ZAR1 billion JUL 2012 Improved PGM offtake agreement with IRS Tharisa Minerals water use license is granted OCT 2015 New five year mining contract with MCC MAY 2012 First bulk rail shipment NOV 2011 Community Trust acquires 6% of Tharisa Minerals AUG 2011 Tharisa Community Trust is registered APR 2011 US$150 million Pre-listing capital raising JAN 2011 US$150 million Pre-listing capital raising NOV 2009 Commenced production

• f chrome concentrate

MAR 2009 Acquired 74% shareholding in Tharisa Minerals

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OPERATING COST ANALYSIS – EX-WORKS

PGM CASH COST OF SALES (H1 FY2016) CHROME CASH COST OF SALES (H1 FY2016)

* Including contractor labour * Including contractor labour

Mining * 59% Utilities 7% Reagents 6% Steelballs 3% Labour 6% Diesel 16% Overheads 3% Mining * 49% Utilities 6% Steelballs 5% Labour 12% Diesel 13% Overheads 15%

• Largest deposits of PGMs are found in South Africa, Zimbabwe,

Russia

• Bushveld Complex is the largest platinum resource in the world

and accounts for 75% of annual global production

• Longer term PGM outlook remains robust as global emission

standards continue to tighten while mine production remains constrained and above ground stocks continue to be drawn down

• Fuel cell applications remain potential wildcard

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PGMS PRODUCTS AND END USES

PGM MARKETS PRIMARY USES OF PGMS GLOBALLY

Rhodium Ruthenium Palladium Iridium Gold Platinum

Pt Pd Ru Rh Ir Au

Automotive catalytic converters Jewellery Automotive catalytic converters Jewellery Electrical contacts Chemical catalyst Automotive catalytic converters Optic fibre coatings Corrosion resistant Automotive spark plugs Jewellery Coinage

• Chromite is the mineral extracted from the ore
• Chrome ore is mined from primary chromite deposits
• Chrome concentrates can be recovered from tailings and

secondary ores

• 92% of global chromite produced is metallurgical grade used for

stainless steel production (mostly via ferrochrome)

• Globally, 8% of global chromite produced is the higher value

chemical and foundry products

• Tharisa produces up to 10% of the higher value chemical and

foundry grades, depending on the ore mix

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CHROME PRODUCTS AND END USES

CHROME ORE/CONCENTRATE MARKETS USE OF CHROME ORE/CONCENTRATE GLOBALLY

• Cr2O3 – 30% to

45%

• SiO2 - <1%
• Chrome is the key

ingredient for stainless steel

• Cr2O3 – >46%
• SiO2 - <1%
• High thermal

conductivity and low thermal expansion

• Mould for metal

castings METALLURGICAL GRADE

• Cr2O3 – 45% to

47%

• SiO2 - <1.2%
• Chrome chemicals

for metal plating

• Leather tanning
• Cr2O3 - >46%
• SiO2 - <1.2%
• 98% < 2mm
• Refractory bricks

for furnace linings FOUNDRY GRADE CHEMICAL GRADE REFRACTORY GRADE

92% 3% 3% 2%

CONTACT DETAILS

Investor Relations contact:

Sherilee Lakmidas D: +27 11 996 3547 M: +27 76 276 2529 slakmidas@tharisa.com

www.tharisa.com